(Adds revenues, bond auction)
LOME, Dec 5 (Reuters) - The government of Togo plans to increase spending by 19.6 percent to 829.9 billion CFA Francs($1.72 billion) in 2014 in order to spur growth in the cotton and phosphate-producing West African nation, it said in a statement on Thursday.
The budget adopted by the Togolese cabinet targets economic growth at 6.2 percent in 2014 up from 5.6 percent this year, while inflation will jump to 4.5 percent from 2.5 percent in 2013.
“The budget will better fight against poverty, improve revenue (and) boost the economy by investing in growth sectors,” the government said in the statement.
The government plans to raise about 516.4 billion CFA francs ($1.08 billion) of its revenue from taxes and custom duties, an increase of 41.9 percent from the previous year.
It also plans to tap the regional capital markets by raising 100 billion CFA francs ($208.19 million) through short-term bond auctions.
Togo’s national assembly controlled by President Faure Gnassingbe’s UNIR ruling party, is expected to pass the budget by the end of the year.
$1 = 483.8690 CFA francs Reporting by John Zodzi; Writing by Bate Felix; Editing by Emma Farge